Nepra puts off X-Discos petition for increase in power tariff by Re0.86/unit

Islamabad   –  NEPRA has deferred hearing on Ex-Wapda Distribution Companies (X-DISCOS) petition, for the increase of power tariff by Re0.86 per unit under quarterly adjustment, as it has find the response of the distribution companies unsatisfactory.

In a public hearing presided over by NEPRA Chairman Tauseef.H. Farooqi, the regulator has shown dissatisfaction over the Discos response on the petitions regarding power tariff hike on account of variation in Power Purchase Price (PPP) for the 4th quarter of 2019-20 and deferred the hearing.

In its petition, the X-Discos have requested for the increase of tariff by Rs0.86 per unit on account of variation in Power Purchase Price (PPP) for the 4th quarter of previous fiscal year. The total impact of the increase will be around Rs85 billion. In the hearing the regulator has asked justification from various Discos regarding the logic for the for the adjustments but the distribution companies have failed to satisfy the regulator regarding the plea.

NEPRA Vice Chairman Saifullah Chatta said that since the consumers have to bear the burden of the tariff increase, therefore it is necessary that justification must be provided for the hike in tariff. Nepra has directed Central Power Purchasing Agency (CPPA) to provide justification for the demanded quarterly adjustments.

The regulator deferred the hearing on the petition for one week. Nepra chairman said that all Chiefs and CFOs of the X-Discos and CPPA should ensure their presence in next meeting. In a petition filed with the NEPRA X-Discos have requested adjustments on account of variation in Power Purchase Price (PPP) which includes capacity Purchase price, variable OM, UoSC MoF and impact of TD losses on monthly FPA, for the 4th quarter of the FY20 19-20 i.e. from April to June 2019-20 and requested for allowing transfer of Rs85 billion to consumers.

For capacity Purchase price the Discos have claimed Rs81.109 billion, for variable OM Rs567 million, for UoSC and for MoF Rs2,270 million. On account of impact of TD losses on monthly FPA the Discos (Except QESCO) have shown savings of Rs 1,249 million. For Capacity Purchase Price IESCO has demanded Rs 7,717 million, LESCO Rs 16,300 million, GEPCO Rs 8,415.31 million, FESCO Rs 10,918 million, MEPCO Rs 1,556 million, PESCO Rs 11,706 million, HESCO Rs 4,206 million, QESCO Rs 3,061 million, SEPCO Rs 2,860 million and TESCO Rs 370 million. On account of variation in Power Purchase Price (PPP) Discos have demanded Rs 82.697 million which includes IESCO Rs7,847 million, LESCO Rs 16,320  million, GEPCO Rs 8,830.88 million, FESCO Rs 10,876 million, MEPCO Rs 15,147 million, PESCO Rs 10,519 million, HESCO Rs 3,835 million, QESCO Rs 6,066 million, SEPCO Rs 3,798  million. While TESCO has reported a saving of Rs642 million on account of variation in Power Purchase Price (PPP). On account of variable OM, the Distribution Companies have demanded Rs567 million which includes Rs 64 million by IESCO, Rs 136 million by LESCO, Rs 79 million by FESCO, Rs 98 million by MEPCO and Rs 276 million by QESCO. However, PESCO, HESCO and TESCO have recorded savings of Rs912 million. On account of UoSC MoF the Discos have demanded Rs 2,270 million which includes IESCO Rs 230 million, LESCO Rs 631 million, GEPCO Rs 231 million, FESCO Rs 302 million, MEPCO Rs 412 million, PESCO Rs 277 million, HESCO Rs 77 million, QESCO Rs 82 million, SEPCO Rs 112 million. While TESCO has reported a saving of Rs 85 million on account of UoSC MoF.

It is worth to mention here that in September 2020, NEPRA had allowed X-DISCOs an increase of Rs1.6236 per unit under quarterly adjustments for the 2nd and 3rd quarters of 2019-20 which will enable the Discos to collect Rs164.870 billion from the power consumers within next one year.

Article source: https://nation.com.pk/25-Nov-2020/nepra-puts-off-x-discos-petition-for-increase-in-power-tariff-by-re0-86-unit